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Consumer Action has issued the following statement on Congress' repeal of the CFPB's arbitration rule

Washington, DC—The U.S. Senate passed a resolution (S.J. Res. 47) yesterday to repeal the new Consumer Financial Protection Bureau (CFPB) rule to restore consumers’ rights to band together to hold banks and lenders accountable in class action lawsuits when the companies break the law.

The CFPB conducted a five-year study that revealed the negative impact of forced arbitration on consumers before spending two years crafting a rule to prevent companies from keeping wronged customers from joining class actions. Despite the care taken by CFPB, Republicans in Congress have voted to throw out the Bureau’s efforts before the ink is even dry on the rule announced just this summer.

In our view, the Senate has declared war on consumers and given a big fat gift to companies like Equifax and Wells Fargo, who now can continue to abuse and defraud customers without fear of liability. Because of the short-sightedness of many in Congress, giant banks and other corporations regulated by the CFPB can rest assured that no matter how they treat their customers, those customers will be prevented from collective redress.

Republicans in Congress have decided: There will be NO meaningful justice for consumers wronged by the wealthy and powerful.

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